if taxes are increased and the government cuts down spending that is deflationary. if they don't do it and people don't have money the government will continue to spend and that means the debt which is projected by the budget office in the united states by 2020 will rise to $25 trillion. but the borrowing cost on the government that because the rest of the world is going to hell and people are terrified borrowing costs are cheaper than it has ever been. what is going to happen in my prediction is the u.s. will be downgraded on the debt because nothing is being done. the debt is 105 and went for the downgrade and interest rates were lower than in the meltdown of 2008. the problem with the bears is a they are going to be right sunday but have been wrong since the dow was at 6800 in march of 2009. >> who cares about the debt? the fiscal cliff is a non event. if the republicans get in they will keep taxes low in exchange for raising the debt ceiling. of democrats get in they will do the opposite so we will have low taxes and raise the debt ceiling it and who cares? we w